Gold dinar less volatile than greenback, says Dr M in Muslim call for new yardstick
KUALA LUMPUR, Dec 21 ― The instability of the US dollar is the reason calls to use the gold dinar as a standard currency for trade among Muslim nations is being revived, Tun Dr Mahathir Mohamad said today at the close of the inaugural Kuala Lumpur Summit.
The prime minister added that gold is a far more stable currency for trade compared to the currency of a single nation, namely the US which is currency the largest market in the world, as a common denominator.
“We now have to use one currency as an international currency ― almost ― the USD. But the USD is also not stable, sometimes strong sometimes weak. But gold has got a certain value for all countries in the world
“If use gold as standard, we can call our currency by whatever name, but they must relate to the value of gold in your country. So, if you know the value of gold in your country and the value of gold in the trading partner, we know how much gold is being traded.
“That is the gold dinar standard, that was what was proposed. So we will look at it carefully because using USD hampers trade,” Dr Mahathir told a news conference at the end of the gathering of Muslim world leaders here.
He also said that Bank Negara Malaysia will later engage with other Muslim nations central banks to further discuss the matter.
Throughout the three-day summit, leaders from various Islamic nations including Iranian President Hassan Rouhani and Turkish President Recep Tayyip Erdogan called for the use of their national currency instead of the US dollar in trade.
Hassan also suggesed the use of Islamic cryptocurrency to cut through bureaucratic red tape and make things easier for trade between Muslim nations.
Perlis Mufti Datuk Mohd Asri Zainul Abidin had also brought the “Buy Muslim First” campaign to the KL Summit during his session.
When asked on whether or not establish an Islamic trading currency can invite retaliation from the West or non-Muslim nations, Dr Mahathir pointed out that the reason behind the discussions in the forum was to strengthen Islamic nationsand has nothing to do with other world powers.
“We are gathered here today for this conference to strengthen ourselves because when we are weak, people bully us, expelling us from our countries, etc.
“They also cause wars to be fought within Muslim countries. This conference points out that we have to do things for ourselves, can’t depend on others to stop attacking us because they are stronger
“This is the purpose of this conference. Not for anyone but ourselves,” said Dr Mahathir.
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